Kospi closes flat ahead of U.S. inflation data release

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,755.11 points on Monday, down 0.07 percent, or 1.98 points, from the previous trading session. [YONHAP]

Stocks finished nearly flat Wednesday ahead of the releases of key U.S. inflation data as investors cashed in recent gains. The local currency fell sharply against the U.S. dollar.

The Kospi dropped 1.98 points, or 0.07 percent, to close at 2,755.11.

Trade volume was moderate at 482.5 million shares worth 11.3 trillion won ($8.38 billion), with losers outnumbering winners 499 to 367.

Individuals and institutions led the slight decline, dumping a net 348.1 billion won and 68.3 billion won worth of local shares, respectively, while foreign investors scooped up a net 270 billion won.

On Wall Street on Tuesday (U.S. time), the Dow Jones Industrial Average dropped 0.08 percent to extend its losing streak to a third day ahead of key inflation data later this week.

"Despite the bearish U.S. market, the Kospi remained quite dull at over the 2,700-point level," said Lee Jae-won, an analyst from Shinhan Securities. "Battery, internet and game shares rose to ease the downside trend."

In Seoul, most shares ended mixed.

Samsung Electronics edged down 0.13 percent to 79,800 won, while SK hynix gained 2.6 percent to 181,200 won.

Hyundai Motor advanced 1.46 percent to 244,000 won, but Kia declined 0.7 percent to 113,600 won.

LG Energy Solution added 0.74 percent to 409,000 won, while Posco Future M slid 0.79 percent to 312,000 won. Samsung SDI gained 1.59 percent to 480,500 won.

Naver edged up 0.21 percent to 189,300 won, and Kakao decreased 0.18 percent to 54,800 won.

KB Financial Group lost 3.9 percent to 69,000 won and Hana Financial Group fell 4.07 percent to 58,900 won. Shinhan Financial Group slumped 5.53 percent to 47,000 won.

The local currency closed at 1,348.7 won against the greenback, up 9.2 won from the previous session's close, marking the lowest since Nov. 1, 2023, when the corresponding reading was 1,357.30.

The Kosdaq lost 4.84 points, or 0.53 percent, to close at 911.25.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 1.2 basis points to 3.289 percent and the return on the benchmark U.S. 10-year government bonds lost 0.8 basis points to 4.234 percent.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]